The marketing department of Jessi Corporation has submitted

The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are orn account) Budgeted unit sales 12,388 13,300 15, 380 14,300 The selling price of the company\'s product is $22 per unit Management expects to collect 75% of sales in the quarter in which the sales are made, 20% in the following quarter, and 5% of sales are expected to be uncollectible The beginning balance of accounts recelvable, all of which is expected to be collected in the first quarter, is $72,800 The company expects to start the first quarter with 2,460 units in finished goods inventory Management desires an ending finished goods inventory in each quarter equal to 20% of the next quarter\'s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 2,660 units Required: 1 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole 2. Calculate the expected cash collections for each quarter of the fiscal year and for the year as a whole 3 Calculate the required production in units of finished goods for each quarter of the fiscal year and for the year as a whole Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Calculate the estimated sales for each quarter of the fiscal year and for the year as a whole. 1st Quarter 2nd Quarter 3rd Quarter 4th Qua

Solution

1) Estimated Sales for each quarter: Q1 Q2 Q3 Q4 YEAR Budgeted sales 12300 13300 15300 14300 55200 Selling Price per unit $22 $22 $22 $22 $22 Estimated Sales $270,600 $292,600 $336,600 $314,600 $1,214,400 2) Estimated cash collections for each quarter: Q1 Q2 Q3 Q4 YEAR Previous quarter 72800 for Q1 270600*0.75=202950 54120 257070 for Q2 219450 58520 277970 for Q3 252450 67320 319770 for Q4    235950 235950 Total 275750 273570 310970 303270 1090760 3) Required production in units of finished goods: Q1 Q2 Q3 Q4 YEAR Expected unit sale 12300 13300 15300 14300 55200 Add: Closing units 13300*0.20=2660 3060 2860 2660 2660 Total units required 14960 16360 18160 16960 57860 Less: Opening units 2460 2660 3060 2860 2460 Production units 12500 13700 15100 14100 55400